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New study reveals expats see pension industry as greedy and incompetent
| Published: | 22 Jul at 6 PM |
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The shocking results of a new study have revealed that retirement savers view the entire pensions industry as incompetent, greedy and corrupt.
The research, undertaken by the UK’s National Employment Savings Trust, was intended to survey savers in the auto-enrolment workplace pensions scheme, but has also clearly tapped into the justifiable dissatisfaction felt by users of on and offshore financial product providers. To put it mildly, customers have lost all confidence in insurers and pensions firms.
According to the survey, problems with product providers began as early as 30 years ago, when Robert Maxwell used his failing company’s pension finds as a hedge against looming bankruptcy. The financial crisis took its toll as regards consumer confidence, and savers now have no trust in pension companies or their linked financial advisors.
Savers are also concerned about getting unreliable advice from product salesmen, with many stating that they lost faith when charges stripped more from their investment than had been gained in interest. Comments about the survey results from the head of the Association of British Insurers focused on giving ‘ordinary people’ a ‘better understanding’ of how investments work – a less than reassuring attempt to shift responsibility onto clients.
Overseas expat pension savers who’ve recently fallen foul of mis-selling by crude salesmen tied to various offshore insurance companies could be forgiven for believing they’re in an even worse situation as regards their funds. A survey amongst those affected might produce an even stronger bias against product providers and their representatives, and would reveal even higher levels of greed, incompetence and corruption than exist in the UK.
The research, undertaken by the UK’s National Employment Savings Trust, was intended to survey savers in the auto-enrolment workplace pensions scheme, but has also clearly tapped into the justifiable dissatisfaction felt by users of on and offshore financial product providers. To put it mildly, customers have lost all confidence in insurers and pensions firms.
According to the survey, problems with product providers began as early as 30 years ago, when Robert Maxwell used his failing company’s pension finds as a hedge against looming bankruptcy. The financial crisis took its toll as regards consumer confidence, and savers now have no trust in pension companies or their linked financial advisors.
Savers are also concerned about getting unreliable advice from product salesmen, with many stating that they lost faith when charges stripped more from their investment than had been gained in interest. Comments about the survey results from the head of the Association of British Insurers focused on giving ‘ordinary people’ a ‘better understanding’ of how investments work – a less than reassuring attempt to shift responsibility onto clients.
Overseas expat pension savers who’ve recently fallen foul of mis-selling by crude salesmen tied to various offshore insurance companies could be forgiven for believing they’re in an even worse situation as regards their funds. A survey amongst those affected might produce an even stronger bias against product providers and their representatives, and would reveal even higher levels of greed, incompetence and corruption than exist in the UK.
Comments » There is 1 comment
Matt Frost wrote 10
years ago:
A insightful article, and one which raises a lot of good points thanks. At Finsbury we meet so many clients who have had experiences with these rogues, and are relieved to speak to our advisers, who have the backing of our UK regulated business. For Expats it is important to use a company that is able to carry out investment business in other EEA states, and not just insurances. It is a shame that The Pension Industry is thought of so badly, as there are plenty of great people, who work tirelessly to make sure their clients are looked after!!!
